AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
85.07 USD
-0.96 (-1.12%)
85.07 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 71 industry peers in the Aerospace & Defense industry. AIR has an average financial health and profitability rating. AIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
Each year in the past 5 years AIR has been profitable.
AIR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.99%, AIR perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
The Return On Equity of AIR (2.31%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 8.79%, AIR is doing good in the industry, outperforming 74.65% of the companies in the same industry.
AIR had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.60%.
The 3 year average ROIC (7.36%) for AIR is below the current ROIC(8.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
AIR's Profit Margin of 1.01% is in line compared to the rest of the industry. AIR outperforms 46.48% of its industry peers.
AIR's Profit Margin has improved in the last couple of years.
AIR has a Operating Margin (9.31%) which is in line with its industry peers.
AIR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.04%, AIR is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AIR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
Compared to 1 year ago, AIR has more shares outstanding
AIR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.39 indicates that AIR is not in any danger for bankruptcy at the moment.
The Altman-Z score of AIR (3.39) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.82 indicates that AIR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, AIR is doing worse than 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.39 |
ROIC/WACC0.89
WACC9.84%
2.3 Liquidity
AIR has a Current Ratio of 2.91. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
AIR has a Current ratio of 2.91. This is comparable to the rest of the industry: AIR outperforms 57.75% of its industry peers.
AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
AIR has a Quick ratio (1.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
AIR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.75% yearly.
The Revenue has grown by 17.59% in the past year. This is quite good.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
AIR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.60, AIR is valued on the expensive side.
Based on the Price/Earnings ratio, AIR is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (26.57), we can say AIR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.00, the valuation of AIR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 94.37% of the companies listed in the same industry.
AIR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 94.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR has a very decent profitability rating, which may justify a higher PE ratio.
AIR's earnings are expected to grow with 15.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)1.62
EPS Next 2Y16.76%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
AIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
85.07
-0.96 (-1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change7.13%
Ins Owners2.08%
Ins Owner Change-1.92%
Market Cap3.37B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target92.48 (8.71%)
Short Float %2.92%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)1.44%
PT rev (3m)6.32%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)6.15%
Revenue NY rev (1m)3.29%
Revenue NY rev (3m)7.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 16 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | 343.4 | ||
| P/B | 2.69 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 13.54 |
EPS(TTM)4.13
EY4.85%
EPS(NY)5.32
Fwd EY6.25%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.29%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.29
PEG (5Y)1.62
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.39 |
F-Score6
WACC9.84%
ROIC/WACC0.89
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year44.66%
EBIT Next 3Y21.14%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
Can you provide the valuation status for AAR CORP?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AAR CORP (AIR) stock?
The Price/Earnings (PE) ratio for AAR CORP (AIR) is 20.6 and the Price/Book (PB) ratio is 2.69.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.